Big4Guy

Application specific controls relate to controls which are programmed within an application. These are also called as configurable controls. COSO defined application controls as

"Programmed procedures in application software, and related manual procedures, designed to help ensure the completeness and accuracy of information processing. Examples include computerized edit checks of input data, numerical sequence checks, and manual procedures to follow up on items listed in exception reports."

Application level controls ensure complete, accurate, timely and proper transaction processing and reporting of transactions. Normally, application level controls are more relevant in case of financial reporting applications. To provide comfort to the management, application level controls should be properly designed and operate effectively as intended. Application level controls work best at critical information flow points in the business process. More specifically, application level controls within applications

1. Perform edit checks for input data.
2. Perform validations for input data.
3. Make calculations as per the programming logic defined.
4. Limit access to data and transactions. This is important to ensure segregation of duties and limiting access to sensitive transactions.
5. Provide critical reports to the management about financial information which can be relied upon by the management.

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